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Pros and Cons of Bootstrapping

  • Published December 14, 2022 2:34AM UTC
  • Publisher Osama Hassan
  • Categories Capital Raising Tips

64% of all founders use personal finances to fund their business – Startup Muster, 2018.

Before starting down the path of venture capital, founders should really consider the alternative — bootstrapping.

Here are somethings you may want to consider:

Advantages —

– Founders able to spend more time on business instead of cap raise

– Maintain central ownership

– Easy to pivot

– Lean mindset

– Ability to execute quickly

Disadvantages —

– Personal financial risk

– Can limit ability to drive exponential growth

– Limited access to networks

– Fewer opportunities for mentorship

– Lack of external support

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